Whether by setting up a "middleman" to lend to troubled institutions -- thus evading ownership obligations -- or by exempting certain companies that participate in government programs to buy up toxic assets from newly passed rules, Obama administration lawyers are arguing that investor participation is now the most important goal, the Post reported.

Some businesses have chaffed at being required to temper compensation packages or give up ownership control of their companies to participate in government bailouts.

But at least one legal expert said that to win particpation it may not be legal for the government to exploit loopholes that will circumvent the will of Congress.

"They are basically trying to launder the money to avoid complying with the plain language of the law," David Zaring, a former Justice Department lawyer, told the Post. "They are trying to create a loophole to ignore Congress, and I think the courts will find that ridiculous."